Jun. 22, 2009 - Pitfalls in home buying

Seller keeps downpayment

New York TV consumer reporter, Tappy Phillips, aired the story of a young couple's attempt to purchase a co-op apartment unit. The couple gave a substantial down payment and got a bank commitment. Trouble arose when it was discovered that the land the building sits on is rented and the bank rescinded their commitment. The seller refused to return the couple's down payment and it remains in an escrow account, possibly indefinitely. The money is the couple's life-savings.

In another NYC case that ultimately went to court, the seller of a co-op unit was victorious in keeping the down payment of a buyer who died prior to closing the sale.  Although both situations apply to New York co-ops, they both highlight the importance of using a trusted real estate lawyer for your home purchase, whether it be a co-op, condo, townhouse, single or multiple family regardless of the fact that the State of New Jersey does not make it a requirement. Using a real estate agent provides the buyer and seller with a 3-day window for Attorney Review*  to address any number of issues of concern to you and/or your interest.

* I have no affliation with this firm at this time.  The link is provided for informational purposes only.